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HomeMy WebLinkAbout03-19-07 Special Budget Committee Meeting Minu CLERICAL COMMITTEE BUDGET MEETING HELD ON MARCH 19, 2007 – 6:30 P.M. HELD OVER FROM MARCH 13, 2007 Alderman Carl started the meeting by reporting the Budget for 2007-2008 had an original Deficit of $412,900.00. Sitting in on trimming the Budget Deficit was Alderman Les Carl, Mayor Henize and City Treasurer Kathy Luker with the Department Heads. This was done several days before this meeting. When completed with this meeting the General Fund Budget for 2007-2008 was adjusted to the amount of $214,175.40 deficit plus an additional $60,000 for SRPED. For a total of $274,175.40 deficit Suggested cuts 3/19/07 These cuts were done before the meeting began by City Treasurer Kathy Luker, Mayor Rodney Heinze, Alderman Les Carl. The cuts are listed below by each department. General Fund City Manager’s Assistant -$30,000.00 Add to Carol Kohler Salary -$ 7,286.40 City Manager’s Asst. (Health Ins.) -$14,400.00 Equipment Maintenance -$ 2,500.00 Travel -$ 1,000.00 Training -$ 2,500.00 Residential TIF Development Costs -$ 5,000.00 Demolition Costs -$33,500.00 Subtotal-Administration -$81,613.60 Patrolman -$39,361.00 Patrolman (Health Insurance) -$14,400.00 Squad Car -$18,000.00 Squad Car-Command -$20,000.00 Subtotal- Police -$91,761.00 Subtotal-Fire $0.00 Physicals -$ 5,250.00 Mosquito control -$ 6,000.00 Subtotal-Street -$11,250.00 Recycling fees -$ 7,000.00 Insurance & Bonds -$ 1,100.00 Maintenance Supplies -$ 5,000.00 Subtotal-Garbage -$13,100.00 1 Vehicle Maintenance -$ 1,000.00 Subtotal-Building & Grounds -$ 1,000.00 Grand Total-General Fund -$198,724.60 Original Deficit -$412,900.00 Adjusted Amount -$214,175.40 Items cut from the General Fund Budget (Initially) One patrolman & one dispatcher, 2 vehicles $116,000.00 One Special Operations Apparatus $105,000.00 Demolition costs $100,000.00 SRPED $ 75,000.00 Residential TIF $ 75,000.00 TOTAL $396,000.00 This ends the suggested Cuts to the Budget for March 19, 2007 made earlier. Water and Wastewater Treatment Plant Budget. Alderman Carl asked if the department heads had any other cuts they wanted to make. Wastewater Supt Joe Carruthers and Water Treatment Supt. Greg Pollitt both said they had no more cuts they could offer. Police Chief Jeffrey Fritz suggested cuts of approximately $15,000, and lets buy the car we approve at the last meeting for $18,000. Last year you cut out 2 cars for the police department and we won’t be using the humane society building this year and we budgeted $10,000. Alderman Carl remarked that it was stated at last week’s Clerical Committee meeting that council committed for three years to give $100,000 to fund SRPED. I reviewed all the committee meeting minutes and council minutes, and did not find anything saying that. City Treasurer Kathy Luker said she also reviewed the committee minutes and council minutes and she found one on 2-21-06 to commit to $100,000 and nothing was said for three year period. Alderman Meade wants to increase to the Partnership $100,000 in the Budget from $25,000. The Appropriation Ordinance was always out of balance, this is much like that, so we don’t have to worry about being out of line on the Budget. Alderman Sarff agreed with Alderman Meade, he was sure the commitment was for three years. Alderman Hartford thought the same thing. Alderman Berardi brought up the same story he presented last Tuesday night about Economic Development. He also does not like having Vandewalle & Associates on tab with the city for $60,000. They should be paid out of grant funding as in the past for any work they do and use that $60,000 for the city. Lets negotiate. 2 Alderman Sarff agreed that Vandewalle & Associates were used to survey the scene for clean-up and tried to market the ground at IH. How do you keep them? Alderman Meade commented that we have ask for the Comprehensive Plan. Bell, Boyd & Lloyd would end soon after we finish the agreement with IH. And this is much what the Partnership is doing. Alderman Carl said we are going to ask for City Manager on the ballot in April, none of us would want both positions. We need to wait until after the vote before we could give $100,000 to the Partnership. Alderman Sarff said the two positions are not the same, City Manager runs the city, and economic development works on development. Alderman Carl told Alderman Sarff he did not disagree with him, but we would be adding more funding in the Budget. We have legal fees for Wastewater Treatment Plant Supt. Joe Carruthers at a cost probably $40,000 to $50,000 will have to pay out of the general funds. Alderman Meade remarked that it was decided to not go to court with IH. And we have lowered the property taxes the last two years. The water rate fee was passed by the last administration. Alderman Berardi said we pay more sales tax than anywhere in Illinois. Alderman Schenck said how do we use general funds to promote economic development? A smart move would be for the Partnership to be given funds for projects for special money request. The amount of money is a “blank check” supporting the Hotel/Motel TIF funds. This puts less pressure on our general fund and this needs to be approached in this way. Alderman Berardi recommended we take the animal shelter out of the budget. Mark Rothert said he appreciates the struggle you’re having on the Budget. Economic Development should be supported as it will bring more income to the city. Appreciate reporting to you last week. Alderman Carl allowed George Hall who was sitting in the audience to speak. George Hall was in the audience and was given permission to speak from Alderman Carl. George said I want to talk to the council about a city manager. There is a number of problems that you don’t really understand in the city. And you think a city manager will cure those problems. It is pretty evident, if you look at a background of a city manager he has absolutely no engineering or public works experience or education. Most of those guys come out of a program and ladies, that has a Master’s in Public Administration. If 3 you get one of these people, the problems within the Public Works Department are not going to go away. You’ve tried to address that with a part time engineer, and that’s not working. In view of this part year and consulting engineering firm charged the city to do an intensive review of NCEPDS. I looked at that earlier, and I notice several violations there. Evidently in the next 30 to 45 days, either they did not tell the city there was some serious problems there or they told the city, and somebody failed to act. If you had a professional engineer that ran the Public Works Department that has the experience and education to look at your two technical departments which are your water and sewer, he would have certainly known this problem before they become a crisis situation. And now you are looking at about 15 violations, and looking at potential fines, and they certainly will be leveled against the city. Your also looking at paying attorney fees for employees. I can’t believe no one has asked, “why are you doing that?” The agency that I worked for, if violations occurred and were to employee error, we certainly would not paid for an attorney to defend him. You should exam the needs in the city for the personnel you’re looking at. It won’t change, and the money your paying for these violations would have more than paid the salary of a professional engineer to run the Public Works Department. Your total Budget is a little over $10 million. Look at that and look at the street department, your public works accounts for ½ of every dollar you spend. A budget responsibility of that magnitude deserves a professional person to run that department. Now, I’m not knocking any employees, I think Clif O’Brien does a great job. But he doesn’t have the engineering expertise you need of understanding the technical aspect of water and wastewater treatment. So when you talk about hiring a city manager, I’m going to tell you, I would be happy to debate any candidate that you bring up on his engineering expertise. I don’t think they’ll have any, because that is not their background. So you can go ahead and hire one, and use the same system your doing now, and I can tell you this is not the end of violations you’re going to be seeing in this city. And it is not the last of the infrastructure problems in water and sewer your going to be seeing. Your going to pay a lot of money for somebody to come up with a decision to fix these things when you could have done it in house. Other comments George Hall made. It was said we cut the taxes on the citizens in this town. Yes, you did! You reduced the Tax Levy by a small amount. But, I noticed what my municipal tax is on my utility bill are now. So you have raised my taxes some $200 on utilities a year in this town. I don’t know what you spent that money for, or if there were any restrictions! Nobody ever talks about that utility tax that sort of got levied on the citizens. I would think long and hard before you start throwing tax payers money around and some of these issues. I would concentrate more on the infrastructure in this town, because you’ll get more return fixing these claims before they become major problems. How you do your budget in municipal government? You put what you have to have, they you put in alternatives, what you’d like to have, and they are last. Then as that money becomes available, you already have a guideline for spending that money. I suggest you rethink some of your projects and rank them in some orderly fashion for when you get the money. 4 Alderman Berardi remarked to George Hall. Simply because of your experience in municipal government and dealing with budgets, I want to ask you a question. I think you made another point that countered your first, and that is to have somebody to put the priorities in prospective. To me it would take a city manager with that experience. Looks like your talking more about less, George interrupted Alderman Berardi, and said, “you don’t have an engineering back ground to look at these problems, and that’s the problem! Alderman Berardi said, let me make a comment, you don’t have a crown on your head either! Both Alderman Berardi and George Hall started talking at once and had to be gaveled. Alderman Berardi said, what I’m saying is, a city manager does has experience to run a city and also over see an engineer. George Hall said, he would concede. If you had a city manager the engineer would report to the city manager and he would be able to make technical decision that the city manager would not be capable of doing. Alderman Carl asked for additional comments from anyone in the audience, and none replied. Water & Sewer Budget. Alderman Berardi wants to have a 7 year period of TVing and cleaning of the sewers, and look at the possibility of hiring one person, maybe! Public Works Director Clif O’Brien remarked, you might as well hire two people and not take an employee off of the garbage truck. City Treasurer Kathy Luker reported that the Vac Truck is under the Bonding and that the 2 new employees are under System Maintenance budget. Motion and second by Aldermen Carl/Sarff, the Water & Wastewater Budget be approved for 2007-2008. The motion carried by voice vote, and was unanimous. General Fund Budget. Alderman Schenck said if you look down the column there are not a lot of discrepancy’s. Alderman Berardi said one employee is receiving 4% and the others receive only 3%? Alderman Carl mentioned that is because of negotiations. Alderman Sarff ask if the 3% to elected officials is for all 4 years? City Clerk Nancy Whites answered, yes! Motion Administration Salary. and second by Alderman Meade/Sarff to increase the funding for the Partnership from $25,000 in the Budget to $100,000. Discussion. Alderman Carl said that it would be better to offer $85,000 because of the financial Motion deficit, and since we have to turn down buying a car for the police department. and second by Aldermen Meade/Sarff to amend the motion for $85,000 being given to the Partnership. The motion carried by voice vote, and was unanimous. Voting on the originalmotion. Motioncarried by voice vote, and was unanimous. 5 Motion and second by Aldermen Meade/Sarff, to approve the Administrative Budget as presented. The motion carried by voice vote, and was unanimous. Adjournment at 7:55 p.m. Recording Secretary, Nancy Whites, City Clerk 6